Financial and Managerial Accounting

Transcription

1 Job Ready Assessment Blueprint (Written Only) Test Code: 2120 / Version: 01 Copyright All Rights Reserved.

2 General Assessment Information Blueprint Contents General Assessment Information Written Assessment Information Specific Competencies Covered in the Test Sample Written Items Performance Assessment Information Sample Performance Job Test Type: The industry-based credential is included in NOCTI s Job Ready assessment battery. Job Ready assessments measure technical skills at the occupational level and include items which gauge factual and theoretical knowledge. Job Ready assessments typically offer both a written and performance component and can be used at the secondary and post-secondary levels. Job Ready assessments can be delivered in an online or paper/pencil format. Revision Team: The assessment content is based on input from secondary, post-secondary, and business/industry representatives from the state of Minnesota. CIP Code Accounting Technology/Technician, and Bookkeeping Career Cluster 4- Business Management and Administration Bookkeeping, Accounting, and Auditing Clerks The Association for Career and Technical Education (ACTE), the leading professional organization for career and technical educators, commends all students who participate in career and technical education programs and choose to validate their educational attainment through rigorous technical assessments. In taking this assessment you demonstrate to your school, your parents and guardians, your future employers and yourself that you understand the concepts and knowledge needed to succeed in the workplace. Good Luck! In the lower division baccalaureate/associate degree category, 3 semester hours in Financial and Managerial Accounting Page 2 of 9

3 Written Assessment NOCTI written assessments consist of questions to measure an individual s factual theoretical knowledge. Administration Time: 3 hours Number of Questions: 128 Number of Sessions: This assessment may be administered in one, two, or three sessions. Areas Covered Journalizing 14% Cash and Banking Procedures 8% Merchandise Inventory Financial Statements 12% 15% Competence in Technology Internal Control 6% 6% Basic Accounting Knowledge 12% Advanced Accounting Practices 8% 27% Page 3 of 9

4 Journalizing Understand the theory of double entry accounting Journalize accounting transactions Journalize adjusting entries Journalize closing entries Cash and Banking Procedures Reconcile a bank statement Reconcile and replenish petty cash funds Specific Standards and Competencies Included in this Assessment Merchandise Inventory Demonstrate knowledge of merchandise inventory systems Prepare and analyze transactions using the perpetual method Prepare cost of goods sold and income statement for a merchandising company Prepare adjusting entries based on physical inventory Demonstrate knowledge of LIFO, FIFO, and weighted average methods Financial Statements Identify the components of the four basic financial statements from an adjusted trial balance Prepare and analyze an income statement Prepare and analyze a balance sheet Prepare and analyze a cash flow statement Prepare and analyze a statement of equity Calculate and analyze financial ratios (Continued on the following page) Page 4 of 9

5 Specific Standards and Competencies (continued) Competence in Technology Generate and interpret spreadsheets, charts, and graphs Demonstrate knowledge of accounting software Internal Control Demonstrate knowledge of internal control measures for the protection of company assets and financial records Understand the importance of business ethics Basic Accounting Knowledge Exhibit understanding of terminology related to accounting Exhibit understanding of careers in accounting Exhibit understanding of cash and accrual accounting Exhibit understanding of regulatory bodies, such as the SEC, IRS, FASB, and IASB (Continued on the following page) Page 5 of 9

6 Specific Standards and Competencies (continued) Advanced Accounting Practices Differentiate between methods of business formation, such as sole proprietorship, partnership, and corporation Calculate the amount of uncollectable accounts through aging of accounts receivable Exhibit understanding of stock transaction, such as issuance, treasury stock, and various forms of dividends Calculate and record depreciation using straight line and accelerated methods Exhibit understanding of bond transactions, such as issuance, interest payments, amortization of premium or discount (using effective interest method) and redemption entries Understand the time value of money and application of those principles Prepare budget reports to make business decisions Determine relevant cost and revenue data for decision-making purposes Demonstrate knowledge of cost volume profit analysis Demonstrate knowledge of cost accounting systems, such as job order costing, activity based costing, and variable costing Demonstrate knowledge of standard costs and calculate variances Calculate predetermined overhead rates and over/under applied overhead Demonstrate knowledge of capital budgeting methods such as NPV, IRR, and payback Demonstrate knowledge of basic cost concepts, such as fixed, variable, and mixed costs Page 6 of 9

7 When money is received on account from a customer, the appropriate entry increases A. revenue B. sales C. accounts payable D. cash A deposit in transit on a bank statement is A. added to the checkbook balance B. added to the bank balance C. subtracted from the bank balance D. subtracted from the cash account A purchase of merchandise on account A. decreases an asset B. decreases a liability C. increases a liability D. increases an expense Sample Questions In a multi-step income statement, interest expense would be included in A. revenue B. cost of goods sold C. selling and administrative expense D. other income and expense Double ruling below a total indicates the A. subtotal B. net income C. net loss D. final total (Continued on the following page) Page 7 of 9

8 An actual count of merchandise is called a inventory. A. physical B. perpetual C. merchandise control D. supply A cash discount entry is based on A. invoice terms B. vendor relationships C. purchase volume D. a trade reduction Sample Questions (continued) A corporation pays to its stockholders. A. earnings B. dividends C. contributed capital D. paid-in capital The interest on $200 at 6 percent for 60 days would be A. $1.20 B. $2.00 C. $12.00 D. $ The debt to equity ratio compares the A. amount of liabilities to stockholders equity B. amount of assets to liabilities C. residual value of the assets to the equity D. equity to the assets Page 8 of 9

9 Notes Page 9 of 9